USD Strengthens, Pushing Down EUR/USD, GBP/USD, and AUD/USD
Geopolitical tensions have driven investors towards safer assets, with the USD benefiting from this shift. As a result, major currency pairs like EUR/USD, GBP/USD, and AUD/USD have declined, reflecting the growing demand for the US dollar as a safe haven asset.
EUR/USD Under Pressure
EUR/USD has fallen from its August and September highs due to increased demand for the dollar. Resistance is now at $1.1084, while support lies below $1.1046, with the 55-day simple moving average providing additional support at $1.1025. If the pair falls below this level, the next support point is at the September low of $1.1002.
GBP/USD Declines
GBP/USD continues to weaken, having dropped from $1.3434 in September 2022 to its current support at $1.3267. Additional support levels are found at $1.3249 to $1.3239. The pound is facing challenges due to the Bank of England’s cautious approach, which is limiting its recovery against a strong dollar.
AUD/USD Holds Steady
AUD/USD has seen less volatility than other pairs, remaining close to recent highs. It is currently supported by the 26 September low of $0.6819. Despite a small dip, the Australian dollar has been somewhat resilient due to strong commodity exports, though further declines in global risk sentiment could change its trajectory.
The Appeal of the USD
The USD continues to attract investors as geopolitical risks remain elevated. The Federal Reserve’s hawkish stance on interest rates further supports the dollar’s strength. Unless global conditions improve, the dollar’s safe haven status will likely continue to bolster its value.
Conclusion
Overall, the strength of the USD is putting pressure on EUR/USD, GBP/USD, and AUD/USD. Traders should keep a close watch on geopolitical events and central bank policies, as these factors will dictate the future of these currency pairs.
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